The world has been going through a lot of changes. A lot of things are not the same as they were, and it comes as no surprise that we are due for yet another change. The internet as we first came to know it was a medium through which people were able to explore different domains. Initially, all it did was serve as a vessel for knowledge that could be transmitted through different means, a means that was much more convenient and easier. As time progressed things changed as the era of Web1 had passed and the era of Web3 had come to exist. The difference is that night and day Web2 brought changes like never before making its predecessor seem like a joke. The user interface had greatly improved, the visuals were amazing and even the extent of information that could be gathered was incredible.
Now we are finally entering a new era once again. In a new time and period where Web3 has started to dominate the world NFTs have become a really big deal and the cryptocurrency that initially was a huge medium of risk is now becoming more and more stable. That’s not all though. NFTs have started becoming a medium through which people can do many things. These vary from selling unique NFTs to selling game characters in NFT marketplaces. This is but one of the ways in which NFTs are being utilized. NFTs have been implemented in the ticketing process, they have been introduced in the gaming sector and now they have also been introduced in supply chain management as well. This is but one part of it. NFTs have many more utilities than just this and it comes to no doubt that these NFTs will soon become a very important element of the future.
The implementation of NFTs in supply chain management
The rise of non-fungible tokens (NFTs) has created a new opportunity for the supply chain industry. NFTs are unique digital assets that use blockchain technology to verify ownership and authenticity. This technology has the potential to revolutionise supply chain management by providing a secure, transparent, and efficient way to track and verify the movement of goods and services. Here are some of the ways NFTs can play a role in supply chain management:
Traceability: NFTs can provide a permanent record of the origin, movement, and ownership of goods and services. This allows for a more efficient and transparent supply chain, as all parties involved can easily access and verify information about the product’s journey.
Authentication: They can be used to verify the authenticity of products, reducing the risk of counterfeit goods entering the supply chain. This helps protect consumers and increases trust in the supply chain.
Contract Management: NFTs can be used to manage smart contracts, which can automate the process of executing and tracking agreements between parties in the supply chain. This can reduce the time and costs associated with manual contract management.
Supply Chain Finance: They can be used to secure and manage the financing of supply chain operations. For example, NFTs can be used to represent the ownership of goods and services, making it easier for parties to secure financing based on their assets.
These are but a few ways in which NFTs are used in this sector and while there is a possibility that they might be used in other ways, there has so far been no breakthrough. Rest assured the more advanced the better for the world as progress is something that will always be needed in a world where if one lags behind the possibility of catching up is quite impossible.
Advantages of using NFTs in the Supply Chain Management
- NFTs can reduce the possibility of product fraud and shield companies from significant losses. Businesses can build new connections with suppliers outside of their present network when the need arises by removing the danger of product counterfeiting. NFTs are also extremely useful when used for battery-containing items. The distribution of new items with defective batteries can be avoided by providing customers with accurate information on battery expiration and shelf life. Similarly, the application of NFTs on products with expiration dates, such as food or medicine, can assist in maintaining consumer safety.
- NFTs produce digital footprints or a “token ID” that is attached to the item throughout its existence rather than the lengthy, vast, and complex paper trails that accompany transactional ownership and activity of a range of goods. The data contained in each NFT’s metadata, which points to priceless digital assets that are updated in real-time on the blockchain, specifically defines the uniqueness of each NFT. NFTs from NFT Marketplace make it possible for participants in the supply chain to access the same immutable record on the ledger, minimising and perhaps even doing away with inconsistencies in the information flow between parties. The supply chain data’s dependability and validity are guaranteed by the transparency and immutability features of blockchain.
- Any item can have a digital twin created using NFTs which allows for the attachment of real-world metadata, a unique identity, a current location, a responsible party, possession, container temperature, and other metrics. This provides useful information about the item’s condition, location, or delivery information. If all parties agree to the modification, this metadata is automatically updated on the blockchain as circumstances change. For instance, everyone must concur that customs have been paid. To keep the supply chain moving if a particular item is not added then the manufacturer will find replacements from another site.
Conclusion
So to summarise, NFTs are a great boon in the supply chain sector, they are used in several different ways owing to their uniqueness and their rarity. However, this is but one of the things that need to be taken into consideration. NFTs are the key to the future and their involvement in this basically goes to show that this is but the start and this is not the only way that NFTs can be used and there is more to them.
